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Taxpayer May Not Be Properly Notified of IRS Liens
The Treasury Inspector General for Tax Administration (TIGTA) noted in a recent report that taxpayers and their representatives may not be receiving proper notification when tax liens are issued. TIGTA found that 2 of 125 liens may not have been properly sent to the taxpayer and 6 of 31 (31 of 125 taxpayers had valid authorized representatives) liens were not properly sent to the representative. Using direct projection, TIGTA estimated that over 15,000 taxpayers might been affected by personal failure to be notified and about 60,000 representatives may not have been fully prepared by IRS notification.Thu, 29 Jul 2010 12:23:00 +0000
The failure to notify representatives is more significant than it might appear; many taxpayers are quite dependent on their representatives/preparers on tax issues. In some ways, this finding is not as bad as it looks (TIGTA estimates that over 98% of taxpayers undergoing liens are properly notified) but for those who are not properly notified, an already intimidating prospect becomes even scarier. Of course, taxpayers could pay their taxes (or send appeals for compromise if in awful financial straits) and avoid the lien in the first place.Tax Foundation Tax Estimator
The Tax Foundation, a libertarian/conversative-leaning organization which publishes the Tax Policy Blog linked at right, has developed a calculator which allows users to estimate their upcoming tax liability under three scenarios: all "Bush" tax cuts are retained (recently proposed by three moderate Democrats), all "Bush" cuts go away (the default if Congress does nothing) and the "Obama" budget plan (selective cuts are kept, others expire). One should keep in mind that this will only provide a estimate of the upcoming taxes; nevertheless, this could be an useful tax planning tool.Thu, 29 Jul 2010 12:11:00 +0000
How Will the Financial Reform Act Affect Bank Customers?
An analysis of the Financial Reform Act by AccountingWeb shows a variety of impacts on financial activity--some clearcut, such as the elimination of SOX for certain small public companies and a significant tightening of interest-only loans and prepayment penalties on mortgages while others are more subtle--some unclear degree of limits on hedge fund and derivative trading by banks. The Consumer Financial Protection Agency has been given a sizable amount of power and banks are likely to need to have additional legal compliance officers.Mon, 26 Jul 2010 17:22:00 +0000
As indicated in previous posts, any increase in government regulations given the present weak economy makes me somewhat nervous; having said that, I also recognize that only BP stands in lower public regard than the large banks today within the business community. Hopefully, the tighter regulations will not dry up the willingness of banks to lend to individual consumers of middle-quality credit; however, don't be surprised to see "tight money"; which would further endanger the shaky recovery.$50 to Register with US Government as Tax Preparer
Recently issued IRS proposed regulations include a $50 technology fee to register with the IRS as a tax preparer. Additionally, a smaller fee appears likely for online access. While the link to the actual proposed regulation was broken, it APPEARS that the fee is a one-time fee.Thu, 22 Jul 2010 20:27:00 +0000
While this fee on the face is fairly innoculous, an equity question is raised. Traditionally, the IRS has limited direct preparer representation of taxpayers to self, spouse, business "partner", officers of a business or appropriate representative of estate or trust, direct preparer in some cases, enrolled agent, CPA or licensed attorney. Given that tax preparers who not EAs, CPAs or JDs will be paying this fee, equity suggests that they should now be eligible to directly represent taxpayers. Whether this should happen from a professional perspective is likely to generate similar debate to that raised by the testing requirements of the new taxpayer PIN registration--I look forward to seeing the tax bloggers comment on this issue.SOX Undarned--$75 Million Exemption for Smaller Public Companies Likely
The North (San Francisco) Bay Business Journal is predicting that Congress will exempt public companies with capitalization of less than $75 million from certain audit requirements--including an audit of internal control. The provision, intended to be "permanent", is likely to be included in Congress's financial reform legislation.Thu, 22 Jul 2010 20:11:00 +0000
I have mixed feelings about this decision. The first facet involves government regulation. As stated in earlier posts, I believe that the federal government generally overregulates business and that overregulation has slowed economic growth and perhaps even led some companies to list in non-US exchanges. On this facet, Congress deserves commendation. On a second facet, Clark Keeler (interviewed in the article) raises a good point--Sarbanes-Oxley has effectively become "best practices" in internal control development and disclosure and companies failing to reach the SOX standards stand at risk of higher interest rates, lower bond ratings and/or lower stock market prices. Therefore, I hope that "small" public companies which opt out of explicit SOX compliance will still attempt to achieve SOX compliance on auditing issues, especially internal control.An Appeal to Slow IRS 1099 Regulations
Democratic Senators Evan Bayh (IN), Paul Begich (AK), Ben Nelson (NE) and Jeanne Shaheen (NH) have called on the IRS to find ways to keep the new health-care (often called Obamacare) reporting regulations from overwhelming small businesses. A particular concern is a provision which requires the filing of 1099s to vendors which have sales of over $600 to healthcare providers during the year. The Senators encourage the IRS to find ways to reduce the paperwork burden; perhaps by allowing healthcare providers to consolidate this information with other paperwork.Wed, 14 Jul 2010 15:52:00 +0000
We applaud these predominately moderate Senators for taking important first steps toward realizing the damage that heavy Federal regulation has done to American economic activity--including employment levels. Sadly, many Democrats and no small number of Republicans still need to get this "memo."PCAOB Attempts to Upgrade Confirmation Standard
The Public Companies Accounting Oversight Board has proposed a confirmation standard to supercede present AU 330. Daniel Goelzer of PCAOB says that the new standard would modernize confirmation requirement, increase the focus on confirming with independent third parties and more explicity address risks of errors and frauds. Interested parties have about 60 days for public comment before the new standard is sent to the SEC for consideration.Wed, 14 Jul 2010 15:33:00 +0000
Confirmations have been a hallmark of audits for decades now. While it is not clear how the new guidelines will put greater emphasis on independent parties; the increased focus on fraud and errors is consistent with recent auditing standards such as SAS 99.10 Commandments [??] for CPA Practice
Connecticut CPA William Brighenti gives his insights into how to succeed in the business practices of a CPA--though at times it is hard to tell whether the advice is spoof or serious. The first five edicts: hire good-looking accountants, pay a salary rather than hourly wage to avoid overtime costs, keep the hope of partnership alive to keep the accountants eager, try to take jobs on a retainer and quote an hourly cost rather than a total cost. The final five assertions: let the hired staff handle the telephone, charge the maximum possible, be vigilant against fraud and deceptive financials, avoid sitting on charitable boards and pay only for results, not promises.Wed, 07 Jul 2010 20:39:00 +0000
Specific topics (reducing telephone use and being vigilant against fraud stand out) are of value and admittedly Brighenti's ideas will increase profitability--but probably only in the short run. If serious, Brighenti is too cynical by half; if spoof, the piece is well executed.Some Love for Kay Bell and the Carnival of Taxes and a Warning to Those with Spam Posts
[1] I dropped the ball and did not submit this month, but Kay Bell deserves commendation for continuing to publish Don't Mess with Taxes which presently is on a monthly basis. The carnival will probably be out this afternoon and includes a variety of tax tips of legal, policy and personal finance natures. Kay has been kind enough to link to several dozen of my posts during the Carnival and I believe that reading today's carnival will be worth your time.Mon, 05 Jul 2010 14:04:00 +0000
[2] As strongly as I can make this point, I want to discourage spammers in the comments section (have I been too lenient on close calls in the past?--perhaps). At the risk of appearing to be a xenophobe, I ESPECIALLY will pull posts written in languages other than English (unless an English translation is included--I still may pull it anyway if I am dissatisfied). With non-English language posts, I literally do not know whether the commenters have a valid point or whether they are promoting a spam, pornographic or phishing site.
UPDATE (July 22)--I have now required word verification to reduce spam. My apologies for inconvenience to legitimate commenters.The Homebuyer Credit: What [Else] Could Go Wrong?
The Treasury Inspector General for Tax Administration (TIGTA) just reported that about $9 million in homebuyer tax credits were claimed by prisoners. Additionally, over 80 IRS employees made errant or fraudulent homebuyer credit claims. Overall, over 14,000 inappropriate credits have been allowed, including 2,500 for purchases prior to the credit's inception. TIGTA said that this development was "very troubling" but did give the IRS credit for working to reduce some abuses from the earlier stages of the credit. One example: no minors claiming the credit were found in this investigation.Wed, 23 Jun 2010 17:41:00 +0000
At best, the Homebuyer's credit had marginal justification in attempting to stabilize the housing market and put brakes on the depths of the recession on 2009. With the economy doing slightly better and evidence that the IRS is having difficulty policing abuses of the credit; it appears that the only significant remaining beneficiaries of the credit are realtors and certain politicians.
- Smartbrief: CPA Letter Daily
Senate Republicans fend off Obama's plan to boost small businesses
30 Jul 2010 08:10:59 CDT
President Barack Obama's $30 billion proposal to help local banks loan more to small businesses was kept from a final vote in -More-Award Winning Practice CS — Practice CS gives you the power to manage your firm from anywhere and scales easily to fit your needs. Start simple with time and billing, then add project due date tracking, staff availability, and more. Combined with web-hosted and mobile solutions, your practice goes wherever you go. Learn more and register for a free webinar.
Economists project slower second-half growth
30 Jul 2010 08:10:59 CDT
Many economists have lowered their expectations of GDP growth in the second half of the year because of slow job creation, a -More-Fed officials sound alarm over threat of deflation
30 Jul 2010 08:10:59 CDT
Several Federal Reserve officials, including those who have traditionally worried more about inflation, are expressing worrie -More-SEC fines Citi $75M for failing to disclose high-risk mortgage assets
30 Jul 2010 08:10:59 CDT
Citigroup agreed to pay $75 million to settle a charge from the Securities and Exchange Commission, which accused the bank of -More-Fully updated for 2010: Codification of Statements on Auditing Standards. This essential reference for auditors of non-public companies is fully updated as of February 2010 and will help you find the exact information you need. This new edition includes 4 new Statements on Auditing Standards, including SAS No.117, 118, 119 and 120. > Order Now
Scenario planning can ease uncertainty over standards debate
30 Jul 2010 08:10:59 CDT
Corporate financial officers should plan for specific scenarios that could arise from the ongoing effort to meld U.S. -More-IASB proposes rules for valuing insurance contracts
30 Jul 2010 08:10:59 CDT
The International Accounting Standards Board proposed rules to set up uniform, worldwide procedures for establishing values o -More-How to use an offer in compromise
30 Jul 2010 08:10:59 CDT
The current economic climate makes it harder for some taxpayers to pay their tax bills in full. -More-Housing policy needs an overhaul, Paulson writes
30 Jul 2010 08:10:59 CDT
Financial-regulatory reform won't be complete until Congress does something about the misguided housing policy that helped dr -More-China overtakes Japan as world's second-largest economy
30 Jul 2010 08:10:59 CDT
China's economy grew by 11.1% in the first half of this year, putting it just behind the U.S. -More-Orszag steps down from Cabinet post
30 Jul 2010 08:10:59 CDT
Today is economist Peter Orszag's last day on the Obama Cabinet after a brief but significant tenure. -More-
- Topix: Accounting News
PricewaterhouseCoopers to lay off 500 workers, mostly in Tampa
Sat, 31 Jul 2010 14:09:42 GMT
PricewaterhouseCoopers will lay off about 500 information technology workers, most of them in Tampa, as part of a broader push to outsource to cheaper labor.
Hundreds of jobs cut; headed overseas
Sat, 31 Jul 2010 09:55:08 GMT
More Bay Area jobs are going to India. Accounting and consulting company PriceWaterhouseCoopers is slashing hundreds of local jobs.
The Closing Bell | Stocks of most KC-area companies end July on a down note
Sat, 31 Jul 2010 05:45:32 GMT
Most regional stocks finished lower on the final trading day of July. The exceptions were YRC, up 1 cent, H&R Block, up 23 cents, and Inergy, up 84 cents.
PricewaterhouseCoopers Laying Off 500 Employees
Sat, 31 Jul 2010 01:30:55 GMT
PricewaterhouseCoopers is laying off about 500 in-house information technology employees - most from its offices in Tampa.
Irish online display advertising performs strongly
Fri, 30 Jul 2010 21:21:15 GMT
Outperforms UK equivalent by almost 7% Irish online display advertising bucked the general advertising malaise and performed strongly during 2009, as reported by the first IAB Ireland and PricewaterhouseCoopers online adspend study.
Disney's sale of Miramax: a new era is here
Fri, 30 Jul 2010 17:11:41 GMT
Uma Thurman starred in Pulp Fiction, one of several films directed by Quentin Tarantino and produced by Miramax.
KPMG media head to take top PR role for Co-Op Financial Services
Fri, 30 Jul 2010 14:07:02 GMT
In his new role Tooher will report to Russ Brady, head of group public relations at the Co-operative Group.
Companies Unprepared to Handle IRS Examinations
Fri, 30 Jul 2010 09:52:24 GMT
Senior financial executives and tax directors say they lack formal policies and procedures to manage the IRS exam process effectively, despite reporting a noticeable increase in Internal Revenue Service corporate audit activity over 2008 levels, according to a recent survey by KPMG LLP.
H&R Block hires Minneapolis ad agency
Fri, 30 Jul 2010 05:47:49 GMT
H&R Block has selected Fallon, a Minneapolis ad agency, to handle its advertising account.
GnuAccounting 0.7.7
Fri, 30 Jul 2010 01:38:18 GMT
GnuAccounting is an accounting and bookkeeping application. It interfaces with Moneyplex, Starmoney, Karm, and Winston, embeds OpenOffice.org and Firefox, and utilizes either HSQLDB or a separate MySQL installation.
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